Stock market's June lows are back in sight after S&P 500 loses grip on 3,900

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A slip by the S&P 500 below key chart support at 3,900 opens the door to a test of June stock-market lows, a top Wall Street technician warns.

Stock-market bears maintained the upper hand last week, with the S&P 500 finishing Friday below a crucial chart support level that has technical analysts warning of a potential test of its June lows.

“Over the last three years, the level on the [S&P 500] with the most amount of volume traded has been 3,900. It closed below that on Friday for the first time since July 18 which, in our view, opens the door down to the June lows” near 3,640, said Jonathan Krinsky, chief market technician at BTIG, in a Sunday note .

A move back to the June lows likely won’t be a straight line, Krinsky wrote, but the lack so far of discernible “panic” in the Cboe Volatility Index VIX futures curve and the lack of a drop to more extreme oversold conditions as measured by monthly relative strength index don’t bode well, he said. Krinsky at the time had warned, however, against chasing the bounce, writing on Aug. 11 that the “tactical risk/reward looks poor to us here.”

 

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I expect new 52 week lows by mid October

Good 🛒

I apologize but I'm expecting new 52 week lows by mid October

50/50 bro the market is always 50/50

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